Calendar Spreads

Quote from Russ32:

I have an OIH calendar on as well. The short july didn't have much room to fall today so my position didnt look too good since the oct fell without the benefit of an offset position.
Looking forward to seeing how others play it.
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I also have OIH calls with:
short OIH Aug 160 Call
short OIH Aug 170 Call
short OIH Aug 175 call,
long OIH Oct 170 Call
short OIH Oct 175 Call
long OIH Oct 180
short OIH Oct 190

and naked puts:
OIH Jul 120 Put
OIH Jul 125 Put
OIH Aug 120 Put
 
The board's alive again... :)

Here are my current VIX positions:

Feb/Jul 20
Nov/Jul 20
Feb20/Jul 17.5
Feb 17.5/Jul 17.5

I just couldn't pass up the great entry points, its like the VIX is scripted. The Feb 20 was only .10c more than the Nov 20.. well that was until this morning ?? One of my plays is Long Feb 17.5 at 2.05 and Short Jul 17.5 at 1.10.


And that's why I'm taking a break from OIH. Your $$ goes much further with the VIX plays.
 
Rich (and Rally too),

A calendar spread on a cash settled European product (such as VIX options, www.cboe.com/micro/vix/VIXoptionsQRG.pdf) is a very different animal.
The risk exposure to a possible whipsaw action is real and could be hurtful, though
you might get lucky once or twice.

Regards,
Ben


Quote from RichardRimes:

same here thanks Rally...do you do call's puts or both?
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Quote from Bben1006:

Rich (and Rally too),

A calendar spread on a cash settled European product (such as VIX options, www.cboe.com/micro/vix/VIXoptionsQRG.pdf) is a very different animal.
The risk exposure to a possible whipsaw action is real and could be hurtful, though
you might get lucky once or twice.

Regards,
Ben
More...

Thanks Ben...I'm going to be paper trading until I can really understand the VIX......
 
Quote from Bben1006:

Rich (and Rally too),

A calendar spread on a cash settled European product (such as VIX options, www.cboe.com/micro/vix/VIXoptionsQRG.pdf) is a very different animal.
The risk exposure to a possible whipsaw action is real and could be hurtful, though
you might get lucky once or twice.

Regards,
Ben
More...

I understand the risks or i wouldnt be trading it. I didnt mean to imply it was easy money in my post. However, i still like the risk profile given the current environment. Luck favors the prepared mind. :)
 
Quote from Bben1006:

Rich (and Rally too),

A calendar spread on a cash settled European product (such as VIX options, www.cboe.com/micro/vix/VIXoptionsQRG.pdf) is a very different animal.
The risk exposure to a possible whipsaw action is real and could be hurtful, though
you might get lucky once or twice.

Regards,
Ben
More...

Ben,

Why would European options make a calendar spread riskier than American type options? I thought European options didn't have the risk of early exercise. Can you elaborate on this issue?
 
Quote from pipepuller:

One of my plays is Long Feb 17.5 at 2.05 and Short Jul 17.5 at 1.10.
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You do know today is the last trading day for july right? are you rolling your 17.5 to aug? You probably opened that at the vix lows and now you can roll and scratch.

If you keep doing these calendars i suggest you open them on the spikes(market selloffs) and push your short strikes as high as possible. If the vix makes a sharp move up, your longs wont gain much but due to the fact that the front months trade with the futures and are discounted to the actual VIX value, you can roll them out usually for a scratch.

Of course, if we crash and vix spikes 30+, you will lose alot of edge on these ITM rolls. Also, we will be in a different ball game so size your risk accordingly.
 
Just filled on Feb/Aug 15 @ $0.80.

Looks good on ToS profit range appears to be $11 to $24 at Aug. expiration.

Though I could and may be wrong.

Quote from pipepuller:

The board's alive again... :)

Here are my current VIX positions:

Feb/Jul 20
Nov/Jul 20
Feb20/Jul 17.5
Feb 17.5/Jul 17.5

I just couldn't pass up the great entry points, its like the VIX is scripted. The Feb 20 was only .10c more than the Nov 20.. well that was until this morning ?? One of my plays is Long Feb 17.5 at 2.05 and Short Jul 17.5 at 1.10.


And that's why I'm taking a break from OIH. Your $$ goes much further with the VIX plays.
More...
 
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